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concepts/mining.md

@@ -1,9 +1,9 @@
 # Mining
-The technical process of confirming transactions in a [blockchain](blockchain.md) using the proof of work [consensus-algorithm](consensus-algorithm.md). Mining is typically centralized by companies known as mining pools which pool physical compute resources in order to increase their probability of confirming blocks.
+The technical process of confirming transactions in a [blockchain](blockchain.md) using the proof of work [consensus algorithm](consensus-algorithm.md). Mining is typically centralized by companies known as mining pools which pool physical compute resources in order to increase their probability of confirming blocks.
 
-Mining is an energy intensive process with a large environmental footprint.
+[Proof of work](proof-of-work.md) mining is an energy intensive process with a large environmental footprint because of its use of fossil fuels to provide energy for data centres.
 
-See also [environmental footprint of crypto](../claims/environmental-footprint.md).
+See also [environmental footprint of crypto](../claims/environmental-footprint.md), [proof-of-work](proof-of-work.md), and [proof-of-stake](proof-of-stake.md).
 
 ## References
 1. Dindar, B., and Ö. Gül. ‘The Detection of Illicit Cryptocurrency Mining Farms with Innovative Approaches for the Prevention of Electricity Theft’. Energy & Environment, no. April (2021): 0958305X211045066. https://doi.org/10.1177/0958305x211045066.

concepts/proof-of-stake.md

@@ -1 +1,12 @@
-# Proof of Stake
+# Proof of Stake
+A type of work function used in [blockchain](blockchain.md) [consensus algorithms](consensus-algorithm.md) that involves network participants [staking](staking.md) an amount of a [cryptoasset](cryptoasset.md) which grants them a probabilistic chance to confirm a block (and receive block award) in proportion to the amount of assets they stake.
+
+Proof of stake has been criticized for being intentionally plutocratic and a scheme that overtly enriches those with existing wealth and early investors in the scheme, thus resulting in [consolidation](distribution-problem.md) of the [crypto asset](cryptoasset.md) into the hands of the few. Proof of stake has also been critized for having a less [censorship resistent](censorship-resistence.md) security model as it may encourage collusion and [cartels](cartel.md).
+
+See also [mining](mining.md), [proof of work](proof-of-work.md),  [environmental footprint of crypto](../claims/environmental-footprint.md).
+
+## References
+1. Rosenthal, David. n.d. ‘Stanford Lecture on Cryptocurrency’. Accessed 2 March 2022. https://blog.dshr.org/2022/02/ee380-talk.html.
+1. Plant, Luke. 2022. ‘The Technological Case against Bitcoin and Blockchain’. Luke Plant’s Home Page. 5 March 2022. https://lukeplant.me.uk/blog/posts/the-technological-case-against-bitcoin-and-blockchain/.
+1. Weaver, Nicholas. 2018. Blockchains and Cryptocurrencies: Burn It With Fire. Berkeley School of Information. https://www.youtube.com/watch?v=xCHab0dNnj4.
+1. Schneier, Bruce. 2019. ‘There’s No Good Reason to Trust Blockchain Technology’. Wired Magazine. https://www.wired.com/story/theres-no-good-reason-to-trust-blockchain-technology/.

concepts/proof-of-work.md

@@ -1 +1,12 @@
-# Proof of Work
+# Proof of Work
+A type of work function used in [blockchain](blockchain.md) [consensus algorithms](consensus-algorithm.md) that involves a race to solve to invert a function to find a specific number which is added to a block of transactions to add it to a chain of blocks. In computer science terms, the participants in this system race to compute the *preimage* to a hash function.
+
+Proof of work mining has been criticized for being intentionally wasteful and consuming vast amounts of silicon resources and compute time.
+
+See also [mining](mining.md), [proof of stake](proof-of-stake.md),  [environmental footprint of crypto](../claims/environmental-footprint.md).
+
+## References
+1. Dindar, B., and Ö. Gül. ‘The Detection of Illicit Cryptocurrency Mining Farms with Innovative Approaches for the Prevention of Electricity Theft’. Energy & Environment, no. April (2021): 0958305X211045066. https://doi.org/10.1177/0958305x211045066.
+1. Vries, Alex De. ‘Bitcoin’s Energy Consumption Is Underestimated : A Market Dynamics Approach’. Energy Research & Social Science 70, no. July (2020): 101721. https://doi.org/10.1016/j.erss.2020.101721.
+1. Vries, Alex de. ‘Bitcoin’s Growing Energy Problem’. Joule 2, no. 5 (2018): 801–5. https://doi.org/10.1016/j.joule.2018.04.016.
+1. Vries, Alex de, and Christian Stoll. ‘Bitcoin’s Growing e-Waste Problem’. Resources, Conservation and Recycling 175, no. September (2021): 105901. https://doi.org/10.1016/j.resconrec.2021.105901.

guide/index.md

@@ -40,6 +40,8 @@ Understand the terminology used to describe crypto and web3.
 * [Predatory inclusion](../concepts/predatory-inclusion.md)
 * [United States Dollar](/concepts/dollar.md)
 * [Central bank digital currency](../concepts/cbdc.md)
+* [Proof of work](../concepts/proof-of-work.md)
+* [Proof of stake](../concepts/proof-of-stake.md)
 
 ***
 

notes/market-fundamentalism.md

@@ -48,8 +48,8 @@ Rufus and Stephen end their conversation with an analysis of the market fundamen
     > "I’ll either be rich, or wrong." This is how Sam, a 29-year-old cryptocurrency enthusiast I interviewed on this week’s Money Clinic podcast, summarized his strategy for investing the last £2,000 of his savings in a hugely volatile and unregulated asset class. Claiming that he's not a natural risk taker, Sam has never set foot inside a casino or put money on a horse. "To me, that seems stupid, like you’re throwing money away." He has never considered investing in stocks and shares. Being self-employed, he's never paid into a pension or thought about setting up a self-invested personal pension (Sipp). "No one’s ever given me that kind of information," he says. So why is he prepared to risk his spare cash betting on crypto? Sam found out his younger brother had turned a £3,000 investment into £30,000 within four years — money he now intends to use as a property deposit. "I was very surprised and it made me feel a bit stupid . . . why aren’t I doing this?"*
     * cf low bets in general: tiny but possible asymmetric returns. A regressive tax or distributed lottery.
 * Quants and Hedge funds
+  * Alameda Research / Jump Crypto / DRW Cumberland / Wintermute Trading
   * Jane Street / DE Shaw
-  * Alameda Research / Jump Crypto / DRW Cumberland
   * Goldman Sachs / Credit Suisse
   * Mann Group: [Silverman, Gary. ‘Crypto Has “No Inherent Worth” but Is Good to Trade, Says Man Group Chief’. Financial Times, 2021](https://www.ft.com/content/9275baf4-0422-43a1-b8c9-9317882ca874): 
       > "If you look at cryptocurrencies as a whole, it is a pure trading instrument. There is no inherent worth in it whatsoever. It is a tulip bulb," Ellis said, referring to the flower that became the focus of a 17th-century Dutch financial mania.*